Feeds

Oh Woe is Siebel

'We did not expect the results to be this low'

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Siebel has blamed poor execution and weak demand for its expected first quarter loss, ending a fragile recovery of the firm's finances.

In its preliminary results announcement, the California-based business software firm said it expects revenues of between $297m and $300m for the first quarter. This compares to revenues of $329.3m for the same quarter last year.

Net losses for the quarter are expected to be between $7m and $9m, with losses per share of between $0.01 and $0.02 per share.

"Though our services and maintenance businesses continued solid growth in the first quarter, we are disappointed in our application license revenue," said Michael Lawrie, CEO of Siebel Systems. "Though we predicted some license revenue softness going into the quarter, we did not expect the results to be this low."

He blamed the results on the company's failure to close a number of imminent deals during the quarter and on weak demand throughout the industry. The company is also under pressure from competitors like SAP and Oracle, who are moving into Siebel's CRM niche. It also faces competition from Salesforce.com, which provides CRM software as a rental service, thereby removing the need for capital investment in CRM software.

The company is taking a charge of $11m for the acquisition of edocs. Excluding the charge for edocs the company would have had a net profit of between $2m and $4m, or between $0.00 and $0.01 per share. The acquisition of edocs follows the 2004 acquisition of Irish-based financial software company Eontec, which added bank branch teller and internet banking systems to its CRM portfolio.

The disappointing results will increase the pressure on Lawrie, who faces a rebellion from one important shareholder. Providence Recovery Partners is pressing Siebel to use cash reserves to buy back shares and to improve the company's chances of being acquired. Providence is inviting other major shareholders to discuss the company's financial options.

© ENN

Related stories

Tom Siebel steps down as CEO
Siebel offers up to $150m for Eontec

Choosing a cloud hosting partner with confidence

More from The Register

next story
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
Google opens Inbox – email for people too thick to handle email
Print this article out and give it to someone tech-y if you get stuck
Microsoft promises Windows 10 will mean two-factor auth for all
Sneak peek at security features Redmond's baking into new OS
FTDI yanks chip-bricking driver from Windows Update, vows to fight on
Next driver to battle fake chips with 'non-invasive' methods
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Entity Framework goes 'code first' as Microsoft pulls visual design tool
Visual Studio database diagramming's out the window
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.